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IN RE SOUTHLAND SUPPLY, INC.

No. 79-3777.

657 F.2d 1076 (1981)

In re SOUTHLAND SUPPLY, INC., Bankrupt. Sam JONAS, Trustee of Southland Supply, Inc., Plaintiff-Appellant, v. UNITED STATES SMALL BUSINESS ADMINISTRATION, Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided October 1, 1981.

Attorney(s) appearing for the Case

William J. Tiernan, Newport Beach, Cal., for plaintiff-appellant.

Howard D. Gest, Asst. U. S. Atty., Los Angeles, Cal., for defendant-appellee.

Before CHOY, CANBY and BOOCHEVER, Circuit Judges.

BOOCHEVER, Circuit Judge.

This case involves the validity of a compromise arrangement negotiated between a debtor and its major creditor prior to an adjudication of bankruptcy. Sam Jonas, trustee in bankruptcy for Southland Supply, Inc. (Southland), appeals summary judgment entered by the bankruptcy court in favor of the United States Small Business Administration (SBA). Jonas contends that it was improper for the court to enforce the SBA's security interest against...

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